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Model Test Papers M.241

73 3
2. B’s Share of Profit till the date of his death = ` 7,29,000 × ¥ = ` 43,740.
365 10
As the Profit-sharing Ratio of the remaining partners (A and C) has been changed, deceased
partner’s share of profit will be adjusted in the gaining ratio of the remaining partners through their
Capital Accounts.
12. Z’s Share of Goodwill for 1/3rd Share = ` 37,500

Firm’s Goodwill = ` 37,500 × 3 = ` 1,12,500
As X has been compensated by Z for 1/3rd share, it means, X has sacrificed 1/3rd share
to Z. Thus, X’s Sacrifice to Z = 1/3.
And Also, Y has been debited by ` 9,375 to compensate X, It means Y has gained share
` 9,375 1
on Z’s admission equal to or ◊
` 1,12,500 12
3 1 1
X’s New Share = (Old share) - (Sacrifice to Z ) - (Sacrifice to Y )
4 3 12
-
9 - 41 4 1
= = or
12 12 3
1 1 31 4 1
+
Y’s New Share = + = = or
4 12 12 12 3
1
Z’s Share =
3
111
Thus, New Profit-sharing Ratio of X, Y and Z = : : or 1: 1: 1.
333
13. Players’ Sports & Social Club
INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Expenditure ` Income `

To Salaries 84,500 By Subscription A/c (WN 1) 1,48,800
To Printing 20,700 By Profit on Competition:
To Repairs to Sports Equipments 8,000 Competition Fees 25,900
To Loss on Cultural Evening: Less: Competition Prizes 22,000 3,900
Cultural Evening Expenses 20,600 By Deficit 25,370
Less: Sales of Tickets 17,780 2,820 (i.e., Excess of Expenditure over Income)
To Van Expenses 12,000
To Sundry Expenses 11,800
To Loss on Sale of Van (WN 2) 12,500
To Depreciation on:
Van (25% of ` 63,000) 15,750
Computer (` 16,000 – ` 14,000) 2,000
Sports Equipments (` 62,000 – ` 54,000) 8,000
1,78,070 1,78,070